| Allison was looking to buy a condo. She found one that | | | | in. |
| she really wanted. The seller would provide owner | | | | If you have a consultation with a realtor who then |
| financing. He said she could get the best deal if she did | | | | shows you how you can accomplish your goal... would |
| not use a real estate agent. Allison really wanted it and | | | | it not make sense to use them? |
| they signed a contract. She completed the down | | | | Every year in the country, over 80% of all homes are |
| payment, and closed on the condo. Everything was | | | | sold with the assistance of a real estate professional. |
| going well. But about 2 years later she was notified of | | | | Even people that start out attempting to sell on their |
| a lay off from her job. Allison immediately made the | | | | own eventually turn to a real estate professional. They |
| seller aware of the situation. Then was absolutely | | | | learn that they need the realtor's knowledge, |
| shocked when he said she could lose the condo to | | | | experience, and expertise. |
| him once her payments reached 30 days behind. | | | | These are just some of the benefits of using a real |
| What Allison did not realize is that the contract she | | | | estate agent when selling a home: |
| signed to purchase the condo was a land contract | | | | * PRICING: On the free consultation meeting, the first |
| which does not transfer legal title to her until the full | | | | thing a realtor does is to present a competitive market |
| sale price amount is paid. | | | | analysis (CMA). The CMA is based on recent homes |
| Marc and June were looking for a bigger and saw one | | | | that have sold in your area that are similar to your |
| June really wanted. However they need to sell their | | | | home, and current market trends. A CMA is |
| current home first. They made a decision to not use a | | | | completed with data which only a realtor, or appraiser, |
| realtor. After 3 months their house was still up for sale | | | | have access to. This is the basis for the correct |
| with no offers. The totals of the cost from newspaper | | | | recommended asking price. The correct price right is |
| ads, and keeping the house up on a very popular | | | | crucial in home sales. A too high price will drive buyers |
| home website was really starting to add up. Also | | | | away. Your property will then sit unsold. In addition, |
| adding to this, they were taking a hit in their pay every | | | | when it comes to price, the statistics are clear that |
| time one of them had to leave work, to show the | | | | sellers who list with a realtor receive on average 20% |
| home. Then the house June wanted was sold. That | | | | more for their homes than for sale by owners. |
| really discouraged her. She did not want to keep trying | | | | * NIEGHBORHOOD KNOWLEDGE: Regardless of all |
| to sell, and would cut the lost. They took the house off | | | | the daily headlines, and national news that you hear, |
| everything. They may try to sell again later. | | | | real estate is a very much a local business. |
| Scenarios like these happen all the time each year in | | | | Perspective buyers will know your local housing |
| the U.S. These stories are the reason for this article. | | | | market, especially if they are working with a realtor. |
| The objective of this information is to give an | | | | Which means it is important that you also know your |
| overview of the many advantages and benefits of | | | | local residential market. A realtor that lives, and works, |
| using a real estate professional when buying, or selling | | | | in your area will know your local market. Real estate |
| a home. | | | | agents always have access to the most current data, |
| Right from the start... it would be dishonest if we did | | | | for each neighborhood. These are the things buyer's |
| not say that lots of people do successfully buy a | | | | care about: property taxes, schools, zoning laws, |
| home, or sell their home without a real estate agent. | | | | demographics, proposed projects which may affect |
| However the statistics are pretty clear that the | | | | your neighborhood, noise levels, shopping, |
| overwhelming majority are not successful. Added to | | | | environmental factors, and more. For the home seller, |
| this, feedback statistics indicate people really regret not | | | | these things are equally significant, because they will |
| being represented by a realtor. | | | | affect value, and the marketability, of your home. It is |
| In the case of Allison... the bottom line is any brand new | | | | part of what the real estate professional will assist you |
| agent, just out of real estate school, would have | | | | with. |
| immediately seen this was a land contract. There is | | | | * MARKETING: Today selling a home will simply take |
| nothing illegal about it, and it gives the buyer all of the | | | | more than putting a For Sale sign in the front yard and |
| rights of ownership except the most important one | | | | taking out an ad in the newspaper. In addition to the |
| which is legal title. And a realtor would have quickly | | | | CMA, the real estate agent will present sellers with a |
| notice the extremely severe late payment penalty. | | | | marketing and advertising plan. It will describe |
| Any agent would have cautioned Allison, of not | | | | step-by-step what they will do to sell your home. It is |
| begged Allison, to really think about whether or not this | | | | important to point out here that marketing and |
| would be a good deal for her. | | | | advertising expenses can quickly add up. Depending on |
| In Marc and June's case... They would not have spent | | | | the advertising plan, and the home, the totals could |
| a cent on advertising. They would not have needed to | | | | easily add up the hundreds and thousands. But it is the |
| take time away from work. They would not have to | | | | real estate company that pays this expense when |
| deal with showing the home. And though no one can | | | | you list with them. Even if the home does not sell, or |
| make absolute guarantees, they would have had a | | | | you need to remove the home from the market, you |
| way better chance of quickly selling their home. They | | | | still will not be responsible for any advertising cost. The |
| would have gotten that house June wanted. | | | | realtor's advertising plan can include coordinating open |
| Selling, or buying, a house is an extremely big money | | | | houses, or writing and placing ads in various media. |
| investment. It is ranked as one of the biggest events in | | | | This could be print, TV advertising, radio commercials, |
| life. The experience, knowledge, and expertise of a | | | | internet websites, distributing brochures, and more. And |
| real estate agent are a valuable asset. | | | | of course, there is presenting your house to possible |
| FOR HOME BUYERS: A significant reason why many | | | | buyers. |
| avoid realtors is that most sales related jobs have | | | | * MLS and REALTOR CONTACTS: Despite the fact |
| negative stereotypes. From car salesmen, to insurance | | | | that here have been an explosion of numerous homes |
| sales, to the lady behind the fragrance counter in a | | | | websites out there, the Multiple Listing Service (MLS), |
| department store. Many sales men & women are | | | | also known as Real Estate Information Network (REIN) |
| thought of as rude, pushy, overbearing, untruthful, will | | | | still is the ultimate source for accurate and current |
| pressure you, will say anything to get a commission, | | | | information on every listed home that is currently for |
| etc. | | | | sale. Actually, all of those websites obtain their data |
| But realtors are not just salespeople. They are | | | | either directly, or indirectly, from the MLS. Real estate |
| independent agents, working for the home buyer, | | | | professionals are the only ones that have access to |
| acting on their behalf as their representative providing | | | | the MLS. This is also the method used to advertise to |
| assistance with the home purchase. Real estate | | | | other real estate agents who have buyer clients. The |
| agents do not sell the home. The home owner is the | | | | moment a home is listed, the information about it can |
| person selling it. | | | | be accessed by all the agents in the area and |
| Real estate agents are advocates, consultants, | | | | matched to their buyers. There is a viral effect which |
| representatives, advisers, mediators, social workers, | | | | means that your home is not just being promoted by |
| guidance counselors, credit repair specialist, or anything | | | | your realtor... your home is being seen by every real |
| that a home buyer needs to accomplish their goal of | | | | estate agent in that MLS network. Your realtor may |
| owning a home. The real estate agent will literally take | | | | also conduct an open house just for other real estate |
| you by the hand, and lead you from beginning, to | | | | agents. Then, these realtors recommend your home to |
| closing, if necessary. | | | | their buyers. Studies by the National Association of |
| These are just a few of the benefits of using a real | | | | REALTORS documents that 82% of homes are sold |
| estate agent when buying a home: | | | | through an agent's contacts. |
| * MARKET KNOWLEDGE: Realtors will answer all | | | | * EFFICIENCY: Time is a extremely valuable |
| questions about the current market, prices, interest | | | | commodity. Real estate agent do not waste precious |
| rates and other home buying concerns. The agent can | | | | time showing your house to just anybody who |
| also refer you to other specialists who are necessary, | | | | responds to the ad. Any perspective buyers are |
| including a home inspector or a lender | | | | screened to ensure they are actually capable of |
| * AVAILABLE HOMES: Agents use the Real Estate | | | | buying your home. Realtors weed out, and eliminate, |
| Information Network (REIN) also still known as the | | | | those are not in a position to purchase your home and |
| MLS. It is a database that contains every single house | | | | would clearly be a waste of time. The other agents in |
| listed for sale. It is still the source for the most current | | | | the MLS network working with their buyers will also |
| and reliable information on listed homes. All the other | | | | benefit the seller also, by only showing the house to |
| popular home websites is either directly, or indirectly, | | | | qualified buyers. |
| receiving their data from this source. Internet searches, | | | | * NEGOTIATIONS: Locating a buyer is only the end of |
| open houses, and newspaper ads just will not have all | | | | the marketing phase. Now the process advances to |
| of the homes that are for sale. | | | | the next phase where the seller and the buyer must |
| * FINANCING THE HOME: There has to be a plan on | | | | agree to price, terms, and many contingencies. The |
| out how are you going to pay for the house! The | | | | realtor will help you draft the written contracts and |
| realtor helps you determine what you can afford. A | | | | counter offers. They know the additional legal |
| real estate agent can advise you on home loan | | | | documents that may be required in your state. Your |
| programs, and sources for down payments you | | | | agent can also advise you on what stipulations you |
| otherwise could not have known about. And educate | | | | should make in the contract -- items that should remain |
| on how to qualify for purchasing a home. Realtors can | | | | in the house at closing, for example. |
| recommend home mortgage companies or banks, and | | | | * ONGOING ASSISTANCE UNTIL CLOSING: It also |
| work with loan companies on your behalf throughout | | | | does not end after a contract is signed. Once an offer |
| the entire process. | | | | has been accepted everything progresses to another |
| * VIEWING HOMES: Real estate professionals have | | | | phase, here the buyer's financing will need to be |
| the expertise to assist you in narrowing your home | | | | finalized. The real estate agent coordinates the home |
| search. Seeking only on the homes that match your | | | | inspection, appraisal, moisture inspections, termite |
| features, interest, and price range. This can be an | | | | inspections, a title search, a real estate lawyer, |
| invaluable time saver by eliminated homes that do not | | | | preparation of the deed, as well as ensures that all |
| meet your criteria. The realtor is the source of | | | | repairs and stipulations in the contract are complete. |
| important information about the home and the | | | | Also each individual mortgage company or other |
| neighborhood itself: how long the home has been for | | | | lending institution may require a variety of different |
| sale, the school system, and the home's best features | | | | things before they give final loan approval to a buyer. |
| and so on. Rather than going through properties of all | | | | After all been scheduled, coordinated, and completed, |
| types, your agent can help you focus on the homes | | | | the day of closing finally arrives. The real estate agent |
| that match what you are specifically looking for. | | | | then makes sure that is accomplished correctly. You |
| * CONTRACTS & NEGOTIATIONS: You and the | | | | will only have to review the documents and sign the |
| realtor have been working together and you found the | | | | deed. It is not even a requirement for you to be at |
| home you want... now what? Your realtor will now help | | | | closing. |
| you in making a written offer of purchase. They will | | | | This article was an overview of the many benefits to |
| explain each paragraph in the offer to you. Nest they | | | | having a realtor represent you. We hope this |
| will present your offer to the seller, and negotiate as | | | | information has been a benefit to you, and has |
| your advocate. They help you determine exactly what | | | | answered some questions. |
| to offer, not only the amount but also in other important | | | | As stated earlier... there is much more to selling a |
| factors. Such as contingencies, various inspections, | | | | home then putting a sign in the yard and running a |
| appliances, seller's assistance with required closing | | | | newspaper ad. And... there is much more to buying a |
| costs, and other very important issues. | | | | home then internet searches and riding around looking |
| * FINANLIZING THE SALE: After everyone agrees to | | | | for For Sale signs. |
| the contract and it is accepted, there is still a lot of | | | | Real estate agents do exist for a reason. A home |
| work to do. Your agent continues to help you through | | | | transaction involve one of the biggest financial |
| this process. The realtor makes sure the necessary | | | | investments most people will ever make in their lives. |
| steps are taken, such as finalizing the loan, appraisals, | | | | And the consequences, if not done correctly, can last |
| home inspections, moisture inspections, termite | | | | a lifetime. |
| inspections, performing a title search, final walk through, | | | | If the commission really is the issue. Then you show |
| deed preparation, closing, etc | | | | know that the majority of home sellers are able to |
| FOR HOME SELLERS: When it comes to home | | | | accomplish their financial goals even with the |
| sellers the reasons why avoid realtors is fairly simple. | | | | commission computed in numbers. And, in the |
| They believe they will benefit from not having to pay | | | | overwhelming majority of home purchases, the |
| the commission. | | | | commission does not come from the buyer. This |
| However there is also the simple reality that every | | | | means there really is no reason for a home buyer to |
| seller has a target, or a net amount, they want to | | | | not use a real estate agent. Especially the first time |
| reach on the sale of their home and leave closing with. | | | | home buyer. |
| An experienced real estate agent can show how you | | | | Everyday, Realtors helps buyers and sellers, save time, |
| can achieve this goal, and, leave from the closing with | | | | prevent problems, and avoid the mistakes that could |
| your net amount, even with the commission calculated | | | | cost thousands. |